What Kind of Retirement Do You Want?

Preparing for your later years requires looking at a host of personal and financial details. To enhance your chances of living the retirement lifestyle that you desire, you may want to start by making decisions about how you want to live and basing your financial planning on these lifestyle parameters.

To get started, consider the following:

• How do you want to spend your time? Some retirees capitalize on years of experience and transition to a work arrangement that enables them to earn income without the demands of working full time for someone else. Examples could include working part time or seasonally, being a consultant in your chosen field, or applying transferable skills to a new endeavor. If you prefer to stop working entirely, explore options -- such as volunteering or pursuing personal hobbies -- that you are likely to find fulfilling. Try to devote blocks of time, such as weekends or vacations, to these endeavors before you retire to gauge whether you would enjoy them on an ongoing basis.
• Where do you want to live? Review your preferences regarding your immediate environment. Do you prefer the stimulation of a large city or the natural beauty of the countryside? Do you appreciate the independence associated with a single-family home or would you be happier in an apartment or condo with neighbors down the hall? Factors such as weather, cost of living, proximity to loved ones, and recreational or cultural opportunities may come into play.
• What resources (financial and other) are available to you? Financially speaking, your options for collecting Social Security or converting assets to an ongoing stream of income may influence your retirement planning. Your personal support network is also a factor. For instance, nearby friends or family members who share your interests may make it easier to arrange a stimulating social calendar. In contrast, individuals whose personal identity or social network is rooted in their job may feel more comfortable pursuing activities that build on career skills.
• What preparations do you need to consider prior to retirement? Consider creating a budget that takes into consideration the ongoing living expenses associated with your desired lifestyle. This budget can help you determine whether your financial resources are likely to be adequate or whether you need to modify your plans.

Reviewing your personal and financial objectives in tandem may enable you to embark on a retirement that is one of the more fulfilling periods of your life.